A recent Australian Bureau of Statistics (ABS) survey found that 46.9% of businesses surveyed used some kind of restraint clause, including for workers in non-executive roles. The survey also found 20.8% of businesses use non-compete clauses for at least some of their staff and 68.2% for more than three-quarters of their employees.
Over the last 30 years, Australia has seen a decline in job mobility. Australia is not alone in this and other advanced economies have
experienced the same issue. While restraint clauses are not the only factor contributing to the decline – an ageing population and a rise in
post-pandemic market concentration in some industries has also contributed, it is specifically the role of restraints that is the focus of
the Competition Review issues paper (submissions close 31 May 2024).
From an economic perspective, declining job mobility impacts wage growth and innovation as restraints prevent access to skilled workers
within the economy. Productivity is a key concern as Australia’s productivity has declined in the last 20 years.
The review states that, “The direct consequence of a non-compete clause is that it hinders competition among businesses: it disincentivises
workers from leaving their current job, creating a barrier to the entry of new businesses and the expansion of existing businesses.”
For business however, this is the point - restricting the knowledge developed by a worker during their employment from benefiting a
competitor, limiting the likelihood of a ‘mass exodus’ of key workers from the business to a competitor, preventing clients from employing
key workers, and protecting the value of the business by preventing employees from walking away with customers that were hard won, at a
cost, by the business.
However, the impact of restraints appears to be a psychological deterrent given that most are not contested. Of the 115 matters relating to
restraints of trade between 2020 and 2023 dealt with by Legal Aid NSW, only one business commenced proceedings in court against a former
worker. And, a further study indicates that where employers seek legal redress in the courts, they are more likely than not to fail.
The international trend is to either ban restraints for workers under a certain income level and time limit restraints for higher paid
workers, or to limit the duration of restraints generally but specify a level of compensation to the worker for the restraint period.
| Non-compete clauses | prevent workers from joining a competitor or starting a new business in competition with their current employer for a period of time. |
| Non-solicitation clauses | prevent workers from soliciting former customers and co-workers. |
| Non-disclosure clauses | prevent workers from disclosing confidential information relating to their employment. |
We'd love to help you experience life with greater choice.
AI-Enhanced Automation for Accounting and Finance Professionals: Leveraging ChatGPT, Copilot & Claude for Innovation and
Productivity.
Join SkyBots’ 2-day Workshop in GOLD COAST with automation expert Daryl Aw to revolutionise your workflow using
cutting-edge Agentic AI tools including Chat GPT, Claude, CoPilot and Gemini. This workshop is built for accountants,
bookkeepers, finance teams, and business owners who want to move beyond basic prompts and turn AI into a reliable, ethical, and practical
system for everyday work.
AI-Enhanced Automation for Accounting and Finance Professionals: Leveraging ChatGPT, Copilot & Claude for Innovation and
Productivity.
Join SkyBots’ 2-day Workshop in MORNINGTON with automation expert Daryl Aw to revolutionise your workflow using
cutting-edge Agentic AI tools including Chat GPT, Claude, CoPilot and Gemini. This workshop is built for accountants,
bookkeepers, finance teams, and business owners who want to move beyond basic prompts and turn AI into a reliable, ethical, and practical
system for everyday work.
Lunch & Learn Workshop // 4 September, 2026 - 12:00 - 1:30pm
$35pp includes lunch
Many business owners believe growth comes from more sales. But in reality, the strongest and most profitable
businesses grow by improving how the business works, not just by selling more. This session is designed to change that. The
5-Critical Financial Metrics
is a practical workshop that shows you where small, targeted changes can create disproportionately big improvements in profit, cashflow and
sustainability.
MP SHIRE SMALL BUSINESS FESTIVAL / LIVE WORKSHOP
Friday 31 August, 4:00pm-6:00pm
Join our practical,
educational workshop designed to help business owners understand the lending process and in preparation for funding conversations, learn how lending decisions are really made and what banks actually look for.
MP SHIRE SMALL BUSINESS FESTIVAL / LIVE WORKSHOP
Tuesday 25 August, 10:00am-12:00pm
This practical, confidence-building session is designed to give business owners control. Know Your Numbers is a hands-on workshop created specifically for non-financial business owners who want clarity and confidence in their decision-making.
MP SHIRE SMALL BUSINESS FESTIVAL / LIVE WORKSHOP
Monday 24 August, 5:30-7:30pm
This practical, education-first session helps business owners cut through the confusion and take back control of their business insurance
decisions.
MP SHIRE SMALL BUSINESS FESTIVAL / LIVE WORKSHOP
Monday 10 August, 5:30-7:30pm
This practical session, in collaboration with the Mornington Peninsula Shire as part of the Small Business Festival, helps small business
owners understand AI and automation and shows how small businesses can use smarter tools to reduce manual work, improve accuracy and
create more capacity for growth.
Conference // 5 August, 2026 - ALL DAY EVENT
The B.I.T.E. Business Conference 2026 is the Mornington Peninsula’s premier event for bold business owners ready to rethink what’s
possible, reinvent how they operate, and reignite their growth. Hear from global keynote speakers including Grant Hackett, Andrew Griffiths
and Kate Christie plus local business innovators.
The headlines say negative gearing is "gone." For most investors, that is not what the new law does.
From 1 July 2027, the 50% CGT discount will be replaced — for individuals, trusts and partnerships — by two mechanisms working together: indexation of the asset's cost base, and a minimum 30% tax on the resulting net gain.
Since the beginning of 2025, 62 per cent of occupiers leasing more than 1,000 square metres have either expanded or maintained their footprint.
Darwin's commercial property sector is strengthening with rising rents.
| SMART Business Solutions is pleased to announce the appointment of Josh Underhill as Partner, recognising his outstanding contribution to the firm and the clients he supports every day. |
Smart Business Solutions is proud to announce that Ryan Smit, an accounting student at RMIT University and Assistant Accountant at SMART Business Solutions, has been named Accounting Student of the Year, recognised for his forward-thinking approach to the profession and his commitment to integrating AI, intelligent workflows and technology into modern accounting practice.
The headlines say negative gearing is "gone." For most investors, that is not what the new law does.
From 1 July 2027, the 50% CGT discount will be replaced — for individuals, trusts and partnerships — by two mechanisms working together: indexation of the asset's cost base, and a minimum 30% tax on the resulting net gain.
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